British ColumbiaB.C.’s spending is under the microscope as its deficit balloons $700 million past projections. Some economists say the figures warrant a reassessment of the public sector.Provincial spending under the microscope as deficit balloons $700 million past projectionsCBC News · Posted: Sep 17, 2025 8:45 PM EDT | Last Updated: 12 hours agoPremier David Eby is seen in a file photo from May 2025. Eby said this week that he’s cutting spending by health authorities and reducing the size of the public service. (Ben Nelms/CBC)B.C.’s premier has doubled down on a pledge to cut down on administrative spending as the province faces an $11.6 billion deficit — a figure some economists say warrants a reassessment of the public sector, which has grown substantially since the NDP took over government.On a financial update Monday, finance minister Brenda Bailey announced the province was grappling with an $11.6 billion deficit, exceeding March budget projects by about $700 million.The swelling figures were largely attributed to the end of the carbon tax program, a cooling housing market resulting in a drop in property transfer taxes, lower-than-expected prices in commodities like natural gas and lumber and overall economic uncertainty.On Tuesday, B.C. Premier David Eby doubled down on a previously announced government spending review, while suggesting that billions of dollars worth of private investments in projects like LNG over the next year will help B.C. turn the tide.”We’re going to cut the waste out of the health authorities, we’re already doing it, reducing the size of the public service, addressing administrative waste within the public service without affecting those frontline services that everyone depends on, and we’re going to grow our economy,” Eby said.According to a June analysis by the Business Council of British Columbia, job growth in B.C. has skewed toward to the public sector with 612,000 jobs — about 134,000 above its pre-pandemic trajectory.WACTH | B.C. announces record-breaking deficit: B.C.’s record deficit could have impact on provincial public service jobsThe province announced a record-breaking projected deficit of $11.6 billion on Monday — $700 million more than its original estimate. University of Victoria labour economist Justin Wiltshire said it could mean a serious reassessment of the number of public service jobs in B.C.”The public sector has grown by about 55 per cent since the NDP took office,” said Justin Wiltshire, a labour market economist with UVic. “There are questions that we do need to ask about whether we really do need all those people working in the public sector in British Columbia given the size of these deficits,” he said.”That’s not to say that the province is in dire straits. I don’t think we are, but we’re not trending in the right direction,” Wiltshire said.Eby says so far his government has reduced the public sector by about 850 full-time equivalent jobs.Speech spending scrutinyOn Tuesday, in response to ongoing deficit concerns, the B.C. Conservative finance critic Peter Milobar accused the province with wreckless spending, specifically referencing the Premier’s speech writer.”The premier has signed off on a contract for $600,000 — and believe me I wish this was an actual joke, to hire a speechwriter to inject humour into his speeches,” Milobar told CBC’s The Early Edition.”So if you want to talk about potential waste in government, that would be an excellent place for the government to start,” Milobar said.The Premier was quick to deny excessive spending while acknowledging he had contracted Canadian comedian Charlie Demers for help on speechwriting.Comedian Charlie Demers, seen in a file photo, has been contracted to add humour to B.C. Premier David Eby’s speeches. (CBC)”Speechwriters are a necessary part of the job,” he said. “Mr. Demers, to date, his entire contact is worth $14,000, and he is available as needed for events.Dwindling debt rating?B.C.’s deficit is expected to swell to about $12.6 billion next year.Economist James Brander with University of British Columbia’s Sauder School of Business says the province is equipped to handle a few bad years of debt without disrupting the daily lives of British Columbians.WACTH | David Eby is cutting ‘waste’ spending: B.C.’s nearly $12B budget deficit prompts provincial spending concernsProvincial spending is under the microscope amid B.C.’s multi-billion-dollar deficit. Some economists say it could be time to reassess the ballooning public sector. As CBC’s Jon Hernandez reports, the premier has pledged cuts to what he calls “administrative waste.” But if circumstances get worse than that, consumers would begin to see negative impacts on key services like health care on education.”Basically what will happen if the government continues to run high deficits is borrowing costs will rise and the government won’t raise enough money to provide a full set of services. In the long run, it puts downward pressure on health care services, which is the biggest expenditure item in the budget,” Brander said.”We should certainly be concerned and the government should work hard to get it’s financial house in order,” he added.With files from Jon Hernandez, Katie DeRosa, B.C. Today and The Early Edition
B.C. pledges to cut ‘administrative waste’ amid $11.6B deficit
